KC Fed president: Big banks must be broken up due to high risk

That kind of sanity will get you nowhere in Washington. You must be a bootlicker for the bigger banks or else they will collectively throw a hissy fit and throw hundreds of millions of dollars against you and destroy you. Common sense is strictly forbidden among the ruling class.

“We must break up the largest banks, and could do so by expanding the Volcker Rule and significantly narrowing the scope of institutions that are now more powerful and more of a threat to our capitalistic system than prior to the crisis,” Hoenig told a meeting of the Women in Housing and Finance.

Hoenig called for “Glass Steagall-type” provisions that would no longer allow commercial banks to engage in the riskier activities normally confined to the investment sector.

“We must make sure that large financial organizations are not in position to hold the U.S. economy hostage.

Chris in Paris
An American in Paris, France. BA in History & Political Science from Ohio State. Provided consulting services to US software startups, launching new business overseas that have both IPO’d and sold to well-known global software companies. Currently launching a new cloud-based startup. Full bio here.